Crude Oil Prices Edges Up Today On Supply Concerns, Also Analyst Predict Oil Will Remain On Bullish Side This Month

brent oil prices

COMMODITIES (B-Trams):Crude oil prices increased slightly after industry executives raised concerns about the market’s limited spare capacity and the uncertainty surrounding Russian supplies. At the same time, demand from China, the world’s largest crude importer, is recovering.

After settling 0.4% higher on Monday, Brent crude futures recorded gains of 24 cents, or 0.28 percent, to $86.42 per barrel by 0405 GMT,

After gaining 1% during the previous session, U.S. West Texas Intermediate crude was at $80.69 per barrel, up 23 cents, or 0.29 percent.

As new refining capacity is being ramped up in Asia and the Middle East, processing more crude, Brent prices are on track to rise for the sixth consecutive session, the longest stretch of gains since May 2022.

In a note, Commonwealth Bank of Australia analyst Vivek Dhar stated, “The supply concerns that helped oil prices rise overnight probably stemmed from Chevron’s CEO comment that there’s ‘not a lot of swing capacity’ in oil markets.”

“The disruption to Russia’s oil and refined product exports will be the key unknown for 2023.”

Mike Wirth, CEO of Chevron Corp., stated that ships carrying Russian products and crude must now travel greater distances to reach non-sanctioned markets due to limited oil inventories and swing supplies, making the global market susceptible to any unanticipated supply disruption.

Following Beijing’s lifting of pandemic controls at the end of last year, traders are eagerly awaiting China’s oil trade data for January and February later on Tuesday in search of indications of a recovery in demand.

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This week’s reports of crude and product inventories for the week ending March 3 are expected to show decreases in the United States

Taking into account previous official Energy Information Administration data, this could be the first decrease in ten weeks

The week after week reports from the American Oil Establishment, an industry bunch, are expected at 4:30 p.m. ET (2130 GMT) on Tuesday and at 10:30 a.m. (1530 GMT) on Wednesday from the Energy Data Organization.

Analysts’ price expectations for the oil benchmarks for the remainder of March remain bullish.

OANDA’s Edward Moya wrote in a note to clients, “The oil market was getting closer to the bottom of its recent trading range and it seems too many upside risks should help prices stay comfortably above the $80 level for now.”

Technical analyst at Reuters Wang Tao stated that Brent “seems to be bouncing within a rising channel” and was likely to remain between $80.72 and $93.44 for the remainder of the month.